Revenue Performance - For the three months ended September 30, 2025, total revenue was $17.359 million, an increase from $16.873 million in the same period of 2024, representing a growth of 2.9%[180] - North America generated $15.880 million in revenue for the three months ended September 30, 2025, compared to $15.728 million in the same period of 2024, reflecting a growth of 1.0%[180] - The Asia Pacific and Other segment reported revenue of $1.479 million for the three months ended September 30, 2025, up from $1.145 million in the same period of 2024, marking a growth of 29.2%[180] - For the six months ended September 30, 2025, total revenue was $32.688 million, a decrease from $33.540 million in the same period of 2024, indicating a decline of 2.5%[180] - For the three months ended September 30, 2025, net revenues increased by $0.49 million or 3% to $17.36 million compared to $16.87 million in the same period of 2024[182] - Revenue for the three months ended September 30, 2025, was $17.36 million, a slight increase from $16.87 million in 2024, while revenue for the six months was $32.69 million, down from $33.54 million in 2024[202] Profitability and Expenses - Gross profit for the three months ended September 30, 2025 rose by $1.45 million or 40% to $5.02 million, driven by a reduction in cost of revenue[184] - Selling, general and administrative expenses decreased by $4.63 million or 60% to $3.04 million for the three months ended September 30, 2025, primarily due to lower expected credit loss provisioning and employee benefit costs[186] - Net income for the three months ended September 30, 2025 was $0.64 million, a significant increase of $2.95 million compared to a net loss of $2.31 million in the same period of 2024[181] - Gross profit for the six months ended September 30, 2025 increased by $1.22 million or 16% to $8.88 million, despite a slight decline in revenue[193] - The gross profit margin for the three months ended September 30, 2025 increased to 29%, up from 21% in the same period of 2024, reflecting improved profitability[185] - Total operating expenses for the three months ended September 30, 2025 were $3.04 million, a decrease of 60% compared to $7.67 million in the same period of 2024[186] - Adjusted EBITDA for the six months ended September 30, 2025, was $3.59 million, up from a loss of $1.89 million in the same period of 2024, indicating improved operational performance[202] Financial Position and Cash Flow - The company had a working capital deficit of $8.45 million as of September 30, 2025, primarily due to current liabilities related to FPAs and short-term borrowings[203] - An allowance for doubtful accounts of approximately $3.52 million was recorded, reflecting a heightened risk of non-collection, with a significant customer non-renewal expected to reduce annual revenues by approximately $4 million[203] - The company generated positive operating cash flows of $2.39 million for the six months ended September 30, 2025, compared to $205,000 in the same period of 2024, indicating improved cash generation[208] - Net cash used in financing activities for the six months ended September 30, 2025, was $2.33 million, primarily due to repayments of short-term borrowings and other liabilities[213] - As of September 30, 2025, the company had cash and cash equivalents of $1.87 million, down from $2.76 million at the beginning of the period[205] Strategic Initiatives - The Company aims to leverage AI and digital transformation to enhance operational efficiencies and drive innovation for clients[161] - Aeries focuses on maintaining long-term customer relationships, as a significant portion of revenue is derived from long-term contracts, which may be subject to early termination risks[169] - The company has initiated targeted cost-cutting measures focusing on non-core expenses to improve cash flow without impacting core operations[209] - The company entered into an "at-the-market" sales agreement to raise additional funds, although no shares have been sold under this program as of the report date[207] Macroeconomic Influences - Aeries Technology's operational performance is influenced by macroeconomic conditions, including inflation and geopolitical uncertainties, which have impacted business operations during the reporting period[168] - The effective tax rate for the six months ended September 30, 2025 was 32.7%, an increase from 8.4% in the same period of 2024, primarily due to non-recognition of deferred tax benefits[198]
WORLDWIDE WEBB(WWAC) - 2025 Q3 - Quarterly Report